Looking to integrate your MoneyGuidePro and Riskalyze accounts? Check out our article HERE.
Many passionate Riskalyze advisors use MoneyGuidePro (MGP) as their financial planning tool of choice. So what’s the easiest way to use Riskalyze and MoneyGuidePro in harmony?
In This Article
- Sample Workflow
- Matching MGP Preset Portfolios to Riskalyze Risk Numbers
- Using Custom Portfolio Sets in MGP
- Adjusting MGP's Historical Period
- Using Custom Asset Allocations in MGP
Most advisors begin the financial planning process in Riskalyze, then move to MoneyGuidePro to develop their client's comprehensive financial plan. Once you've completed the initial setup of MGP for optimal use with Riskalyze (as described in the sections below), you are ready to start using MGP and Riskalyze together!
Here is a sample workflow to use:
- Capture your client's Risk Number with Riskalyze.
- Analyze your client's portfolio in Riskalyze.
- Use Retirement Maps for a precursory discussion of goals.
- Create a new Plan with MGP (such as a Financial Goal Plan, Lifetime Income Plan, etc.).
- Set the client or household "Loss Tolerance" based on the client's Riskalyze Risk Number.
Matching MGP Preset Portfolios to Riskalyze Risk Numbers
If you prefer to use MoneyGuidePro's preset portfolio templates without modification, here is a reference chart showing how each preset aligns to the Riskalyze Risk Number for a portfolio with the same asset allocation:
|MoneyGuidePro Portfolios||Riskalyze Risk Number Ranges|
|Capital Preservation I||1-35|
|Capital Preservation II||36-41|
|Total Return I||53-57|
|Total Return II||58-65|
|Capital Growth I||66-72|
|Capital Growth II||73-77|
Using Custom Portfolio Sets in MGP
Most advisors will create a set of Model Portfolios in Riskalyze, then set these models up as "Custom Portfolios" within MoneyGuidePro.
Start by adding a new Portfolio Set in MGP ( User Options -> Create Portfolios), then use Add Portfolio to create a new portfolio.
Enter a name to use for the Portfolio, and the asset allocations to use. For ease of recognition, use the same name for the Portfolio as the model that you created in Riskalyze.
Matching MGP Risk Scoring to Riskalyze Risk Numbers
Once you have added your Custom Portfolios to MGP, edit the "Standard Risk Scoring" and map the range of Risk Numbers from your Riskalyze model portfolios. For example, if you have a conservative model that you use for clients with a Risk Number of between 1 and 34, set the Score Range Beginning Value in MGP to 1. Likewise, set the Score Range Beginning Value for your next more aggressive model to 35, and so on.
Then, when setting your client's Risk Number in MGP, the closest matching Portfolio will be shown above the slider:
Adjusting MGP's Historical Period
To ensure that MGP and Riskalyze operate on the same historical timeframe for data, you may wish to change MGP's Historical Period to match Riskalyze's January 1, 2008 to present timeframe. You can make this change under User Options -> Create Portfolios -> Edit Historical Period.
Using Custom Asset Allocations in MGP
One additional step many Riskalyze and MGP users take is to set up custom Asset Classes within MGP so that both MGP and Riskalyze use the same specific investments (rather than generic asset classes) in their analysis: